Light & Wonder pays Aristocrat $127.5m to settle Dragon Train IP dispute

• Light & Wonder compensates Aristocrat $127.5 million following acknowledgement that proprietary math information was used in Dragon Train and Jewel of the Dragon development
• Both slot games will cease commercialisation globally, with existing installations to be removed as part of the settlement terms.
• Nearly two-year legal battle concludes with dismissal of all claims in Australia and the United States.

Global gaming suppliers Aristocrat Leisure and Light & Wonder have reached a settlement concluding their intellectual property litigation over the disputed Dragon Train and Jewel of the Dragon slot games.

The agreement sees Light & Wonder paying $127.5 million (approximately AUD $190 million) in compensation for trade secret misappropriation and IP infringement.

The settlement, announced through a joint statement on 11 January, brings closure to a legal dispute that began in February 2024 when Aristocrat filed suit against the Las Vegas-based supplier. Aristocrat alleged that Dragon Train bore uncanny similarities to its market-leading Dragon Link series, which first launched in 2017.

Former employee at centre of dispute

Light & Wonder acknowledged in the settlement that certain Aristocrat math information was used during the development of both Dragon Train and Jewel of the Dragon. The company attributed the issue to a former employee who inappropriately accessed proprietary mathematical models.

“This matter arose when a former employee inappropriately used certain Aristocrat math without our knowledge and in direct violation of our policies,” said Matt Wilson, CEO of Light & Wonder.

“Upon discovery, we took immediate action and have since implemented strengthened processes aimed at preventing similar issues in the future.”

The former employee in question was Emma Charles, a game designer who previously worked at Aristocrat before joining Light & Wonder’s Dragon Train development team. Court documents revealed that Charles had access to Aristocrat’s proprietary mathematical configurations relating to its Dragon Link and Lightning Link games.

Dragon Train launched in March 2024, whilst Aristocrat’s Dragon Link series debuted in 2017 and has since become one of the most recognisable slot franchises across North American casino floors. The original Dragon Link featured innovative Hold & Spin mechanics and Asian-themed graphics that captured significant market share.

Settlement terms require game removal

Under the agreement, Light & Wonder must permanently cease all commercialisation of Dragon Train and Jewel of the Dragon worldwide. The company has also committed to making best efforts to remove existing installations of both titles from casino floors globally.

Light & Wonder previously converted out approximately 95% of the 2,200 Dragon Train units from its North American gaming operations fleet within a 30-day compliance period following a preliminary injunction granted in September 2024.

The settlement additionally requires Light & Wonder to permanently destroy all documents containing the identified Aristocrat math information and to refrain from any future use of the mathematical models or related copyright materials at issue in the litigation.

Both companies have established confidential procedures for identifying and resolving potential issues concerning the use of Aristocrat math in certain existing Light & Wonder hold and spin games, as well as titles currently under development. These procedures cover games for which Light & Wonder was ordered to produce math models to Aristocrat during the United States litigation phase.

Court recognition of trade secret value

The settlement follows a preliminary injunction granted by Judge Gloria Navarro of the United States District Court for the District of Nevada in September 2024. The court found that Aristocrat was “extremely likely to succeed in demonstrating L&W misappropriated Aristocrat’s trade secrets” in the development of Dragon Train.

Judge Navarro’s ruling recognised that Light & Wonder “was able to develop Dragon Train by using Aristocrat’s valuable trade secrets and without investing the equivalent time and money” required for original development. The preliminary injunction temporarily prohibited Light & Wonder from any continued sale, leasing or commercialisation of Dragon Train pending the case’s resolution.

Trevor Croker, CEO and Managing Director of Aristocrat, welcomed the settlement outcome whilst emphasising the company’s commitment to protecting intellectual property.

“Aristocrat welcomes fair competition but will always robustly defend and enforce its intellectual property rights,” Croker stated. “As an ideas and innovation company our intellectual property is vital to our ongoing success. We are committed to protecting the great work of our dedicated creative and technical teams.”

Croker added that the outcome included “significant financial compensation and follows the decisive action we took to ensure the preservation of Aristocrat’s valuable intellectual property assets”, referencing the September 2024 preliminary injunction.

Expanded review of hold and spin titles

In April 2025, Light & Wonder voluntarily stopped commercialising Jewel of the Dragon after Aristocrat filed a second amended complaint adding trade secret misappropriation claims against that title.

The company also halted development of an unnamed game that internal review processes identified as potentially presenting issues relating to Aristocrat’s intellectual property.

Light & Wonder conducted an internal review of all hold and spin games released since mid-2021 following the preliminary injunction, which the company stated did not reveal additional infringements beyond Dragon Train and Jewel of the Dragon. The supplier subsequently expanded this review to include all hold and spin games released before mid-2021 after identifying historical Aristocrat PAR sheets during discovery processes.

The company maintained that Dragon Train was estimated to account for less than 5% of its full-year 2025 adjusted EBITDA, with a target of $1.43 billion to $1.47 billion remaining unaffected by the settlement.

In October 2025, a Nevada court ordered Light & Wonder to hand over math models for certain hold and spin games as part of the discovery process.

Industry implications for IP protection

The joint statement from both companies acknowledged that significant investment and innovation goes into game design and development, including complex and confidential underlying mathematics.

Both parties agreed that maintaining protection of valuable proprietary assets and respecting intellectual property remains essential to ensuring fair competition across the gaming industry.

Wilson emphasised Light & Wonder’s commitment moving forward:

“This settlement protects the interests of our customers, employees and shareholders, and allows us to continue our focus on developing and delivering the market-leading content our customers expect—without distraction or disruption.”

The settlement addresses growing concerns within the gaming sector regarding intellectual property protection, particularly as employee mobility between competing suppliers increases.

The case highlighted tensions arising from Light & Wonder’s hiring of multiple former Aristocrat executives and designers, including chairman Jamie Odell, director Toni Korsanos, and CEO Matt Wilson, who previously headed Aristocrat’s Americas team.

Legal claims dismissed in both jurisdictions

As part of the settlement resolution, Aristocrat’s claims against Light & Wonder in Australia and the United States will be dismissed. The litigation had proceeded in both jurisdictions following Aristocrat’s initial complaint filed in the US District Court of Nevada in February 2024, with parallel proceedings initiated in the Federal Court of Australia.

The case attracted considerable industry attention due to the profile of both companies and the potential implications for game development practices. Aristocrat Technologies is a subsidiary of ASX-listed Aristocrat Leisure, which operates across land-based gaming, social casino and online real money gaming segments with over 7,400 employees globally.

Light & Wonder, headquartered in Las Vegas and listed on both NASDAQ and ASX, employs approximately 6,500 people across its gaming, SciPlay and iGaming divisions. The company describes itself as the leading cross-platform global games company, delivering content across land-based, online and mobile channels.

The settlement concludes one of the gaming industry’s most closely watched intellectual property disputes in recent years, with share price implications for both companies throughout the litigation period.

Light & Wonder’s stock experienced notable volatility following the preliminary injunction, whilst Aristocrat maintained its position that defending intellectual property remained paramount to supporting innovation and fair competition.

Neither company provided specific details beyond the $127.5 million compensation figure, with both parties confirming that additional settlement terms would remain confidential. The resolution enables both suppliers to refocus resources on product development and market expansion without the ongoing distraction of protracted litigation.